Available analysis of customer behavior
Especially cost of sales is a key differentiator for SaintGobain, because it enables the company to preserve profit margins by persuading or incentivising customers to change their purchasing behaviours.
“As one example, many small companies tend to over-order and then return the products that they don’t need. The returns process is very expensive to manage, so we need to discourage this kind of behaviour in order to preserve our profits. Another example might be the way that the customer places their orders: if they do it online via our web shop, the cost for us is minimal; but if they visit one of our stores, the cost is higher. Equally, if they often order custom components that we have to source especially for them, or if they have unusual delivery requirements, this can also increase the cost of sales,” says Morten Nikolajsen.
Now Saint-Gobain use the IBM Cognos solution to measure all of these factors and give each customer a score that relates to their cost of sales, compared to the average.
“We now have instant access to the latest sales information, updated on a daily basis, and available whenever users want to see it,” comments Nicolai Riisager, Business Analyst. “We no longer have to rely on the knowledge of individual salespeople about how we should handle a customer.”
A new and vital work routine
In the first month that the new solution was live, each salesperson used the new report an average of ten times.
“The report was immediately an important part of their working routine. We are still in the early stages, but over the next few months we expect to see significant benefits, particularly in terms of reducing cost of sales,” Nicolai Riisager says.
And Jesper Clausen has only positive feedback about the cooperation with Kapacity:
”Kapacity’s technical skills are first-class, and they have a very good project management approach, especially in terms of change management and knowledge transfer. Thanks to Kapacity, we have been able to build a sales analytics solution that meets all our corporate objectives.”
About Saint-Gobain Distribution Denmark
Saint-Gobain Distribution Denmark, part of the Saint-Gobain group, is a specialist in the wholesale distribution of equipment and tools for the Danish construction and plumbing industries. The company has its headquarters in Brondby, employs 1,400 people, and operates 60 sales outlets and 10 warehouses across the country.